The Strategist

GameStop papers, silver slump down after flashmob-inspired growth


02/03/2021 - 02:19



GameStop and AMC Entertainment shares traded on the New York Stock Exchange fell 54% and 49% respectively after briefly taking off late last week in response to a flash mob by internet users of the popular resource Reddit.



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Silver, to which users decided to switch following their success with GameStop shares, was also down by almost 9%.

Analysts assumed that the decline in quotations was due to an end to the effect of mass buying of individual assets by a limited group of retail investors - which in any case is not enough to sustain the quotations of an asset, whose prices are set by more complex and profound processes in the stock and commodity markets for a long time. 

"It looks like the attempt to squeeze investors with short positions in the silver market has failed, at least for now," MarketWatch quoted Kitco.com senior investment analyst Jim Wyckoff as saying.

Yesterday, U.S. regulators said they will examine the silver market for possible manipulation. 

For its part, the U.S. Congressional Committee on Financial Services Markets said it would hold a hearing on February 18 in a remote format on the sharp fluctuations in the share price of GameStop and other companies.

source: marketwatch.com